Reply to: Different rates pre and post interview/offer

[swamp]

I've seen a case where an agency was ripping contractors off and they were dumped completely and all their contractors were marched off site.

Pretty harsh on the contractors.

[Wanderer]

How do you know that they are on a fixed percenatge. What stops them being on a fixed percentage + your £50

It is possible that they are pumping their margin up but more and more clients are pre-empting this by negotiating a Preferred Supplier status for a small number of agencies.

Part of the deal is that the agency takes a fixed commission, the client tells the agency how much to offer the contractor. The client has a water tight contract which says "you will pay the contractor 90% of what we pay you".

The agency does the dirty work of negotiating with the the contractor and if they can get the contractor for a lower rate then they are contractually obliged to pass this lower rate onto the client not use it to pump their margin.

So why would the agent bother negotiating a lower rate then? Because it's their JOB and it makes the client happy that they are actually doing something useful for a change.

What if the agency gets the contractor to take a rate cut and doesn't pass this saving on to the client then? If they do this then they are in breach of their contract with the client (who owes them > £100,000 at any given time) and when the client finds out they seek remedies for the breach of contract eg, withholding money they owe to the agency or even remove the agency from their PSL.

I've seen a case where an agency was ripping contractors off and they were dumped completely and all their contractors were marched off site.

[BoredBloke]

How do you know that they are on a fixed percenatge. What stops them being on a fixed percentage + your £50

Have you seen the T&C's between the agent and the client?

[NorthWestPerm2Contr]

Another thing to take into account is the market you are in. I am noticing agencies becoming a lot more desperate for finding good developers (with a particular skillset) out there for example. If you are in a strong position then they won't have as much choice.

[2BIT]

This happens a lot. The agent is taking the pi55. The script goes like this -

1 Tell the agent that you're going to call the bloke who you met from the client co to double check.

2 The agent says to give him a few minutes and he'll get back you.

3 Then within 15 minutes the agent calls you back having got you the £50 back as if by magic.

WHS - if that doesn't work so no probs have something else lined up for that rate so will do that instead - could well have the same affect

[stacks]

I encountered that recently. Agent all along quoted £X per day, got the offer though at X -£25. £X was infact still £50 a day more than my last contract and I wanted the position so I just rolled over.

All depends how much you want the contract or time on the bench!

[RockyBalboa]

Well, agent states their percentage is 15% and they are unable to budge on that. I have asked him to try to negotiate more for me and he will come back to me.

Quite frankly, I am not sure if he is just lieing or tried it on with the client in terms of sending them CVs and managing the fall. Surely, the end client would look at the total cost of the resource (agent %age plus candidate rate) as opposed to just the candidate rate?

Will see what happens.

[swamp]

I've had post-interview rate reductions a couple of times. Each time I said "no" and I got my original rate.

Don't take it too personally: agents and clients may just be doing their job when they ask you to take a reduction. And remember you can do the same, ie ask for more money

[Wanderer]

Why would the agent do this if they are on a fixed percentage (assumption)?

If they are on a fixed percentage then they may be trying to negotiate a better deal for the client. Alternatively, the client may say "Offer this guy the job. See if he will come in at X - £50, if he doesn't then try the other bloke. If they won't budge on the rate then come back to us and we will tell you how to proceed".

Of course, the suspicion is always going to be that they are trying to pad their margin. Ask them straight up how much their cut is. The better agencies will be open about this and tell you. If they won't then be careful about doing business with them.

[RockyBalboa]

Well I have asked a friend of a friend who works in the same co. and he says:

I suspect the agency knew the rates all along and wanted to reel you in first rather than be upfront about it OR they just threw CVs at the client & then managed the fallout. Difficult to know but would ask if they would be prepared to be open book with you as a show of good faith, that should help flush out the position. I would also say to them that this is strange since all agencies are on a fixed % and rate card so they should not be getting beaten up on rate.

[TheFaQQer]

This happens a lot. The agent is taking the pi55. The script goes like this -

1 Tell the agent that you're going to call the bloke who you met from the client co to double check.

2 The agent says to give him a few minutes and he'll get back you.

3 Then within 15 minutes the agent calls you back having got you the £50 back as if by magic.

Or alternatively, script goes

1 Tell the agent that you're going to call the bloke who you met from the client co to double check.

2 The agent says best of luck.

3 You don't have the clients details so have no choice but to then climb down, looking a bit silly.



Or alternatively, script goes

1 Tell the agent that you're going to call the bloke who you met from the client co to double check.

2 The agent says best of luck.

3 You ring the client and they tell you to negotiate through the agency, that's why the agency is there.


Or alternatively, script goes

1 Tell the agent that you're going to call the bloke who you met from the client co to double check.

2 The agent says to give him a few minutes and he'll get back you.

3 You never hear from the agency again.


Or alternatively, script goes

1 Tell the agent that you're going to call the bloke who you met from the client co to double check.

2 The agent says best of luck

3 You speak to the client, who says they will discuss with the agency. You never hear from either again.




There are lots of ways that it can pan out - only threaten to do something if you are (a) in a position to do it and (b) willing to do it.

[xchaotic]

The agent will also tell the client that you asked for £50 more thus maximizing his profits both ways, such is the life of the middlemen...

[BolshieBastard]

The other contractor probably agreed to 50 quid a day less than you so to avoid any awkwardness, the agent is probably trying to get you in at the same rate.

He wouldnt try and negotiate you down if he was on a fixed percentage margin.

[RockyBalboa]

Why would the agent do this if they are on a fixed percentage (assumption)?

I also assume that the agent would fed the other successful guy the same spiel?

[Fred Bloggs]

This happens a lot. The agent is taking the pi55. The script goes like this -

1 Tell the agent that you're going to call the bloke who you met from the client co to double check.

2 The agent says to give him a few minutes and he'll get back you.

3 Then within 15 minutes the agent calls you back having got you the £50 back as if by magic.